The couple spent nearly four hours combing through our financial statements. When they finished, the man looked over us and gave us hope: “Well, you don’t have a spending problem,” he said. “You have an income problem.”

“So we’re not doing anything wrong?” I asked.

“No, you’re not,” he responded. “You just don’t have enough money to live on. You need to increase your income.”

We had a toddler, a baby, and would soon discover I was expecting our third. But that afternoon gave my husband and I the motivation we needed to find some way to increase our income. It put us on the pathway to financial stability.

The difference between an income problem and a spending problem

When we were still struggling financially, it was not uncommon for me to hear others say they were as well.

The cynical side of me thought this girl was crazy. If she only knew how little money we are living on, I thought, as we watched our children climb the monkey bars at the park.

I soon came to learn that financial struggles have different roots–and that’s OK.

For some, like us, it was a low income. For others, it’s crippling debt from student loans, credit cards, or medical bills.

And for others, it’s poor spending habits.

Whatever the cause of our financial challenges, we all need grace to get through them.

Grace for Those with an Income Problem

1. Restore the lost art of piggy bank savings.

After the recession, families are realizing the importance of saving versus getting buried under credit card debt. Many are returning to the simple principals of piggy bank savings and teaching their children to form positive financial habits.

A few Christmases ago, my husband made our girls each three different jarred “piggy” banks (pictured above). One of these is designated for giving, one for savings, and one for spending. It is fun to watch these financial principles starting to click with our kindergartener who is learning about money at school.

When we were low income, I said we barely had two pennies to rub together, but, really, those little pennies add up. If all you can save is what will fit inside of a piggy bank, it’s OK to start there!

2. Teach giving first.

This is the pillar of a biblically-based financial plan.

Even when we were low income, we still tithed to our church. At that time, it truly felt like sacrificial giving.

We also continued to support a missionary family for $30 per month. We had begun this support before we were low income, and at the time we made the commitment it was not hard to see that $30 go. During our lean years, that $30 might have looked like the widow’s mite to some, but it was a lot for us.

But guess what? God never ceased to provide for all of our needs.

3. Increase your income.

I know (believe me, I know!) that when you’re still in the tunnel you might not feel that this is even possible. You may feel like you don’t have any skills to take on jobs that can increase your income.

Let me tell you, dear reader: When there is a will, there is a way!

After our meeting with our Financial Peace teacher that day, my husband began working more side jobs. And I poured myself wholeheartedly into growing this blog. Now, I make an income from home.

Grace for Those with a Spending Problem

I admit that when we first got married I was frustrated with how my husband spent money. He was never a super spender (we never racked up credit card debt, etc.), but I wanted to save and scrimp every penny, and he just wanted to have a little more fun.

To this day, this can be a struggle with us, but saving and spending doesn’t have to be all or nothing.

Even those with spending problems can find hope and learn to save and spend more wisely.

1. Teach kids the value of money.

We are just now starting this with our kids. My parents never shared with me their exact income (and we don’t plan on doing that with our kids either), but we do talk about how mommy and daddy work to earn the money to pay for our house, food, clothes, etc.

2. Define wants versus needs.

This is HUGE. Especially in America, there are so many things we deem as “needs” that are really wants.

There are really very few things that we absolutely, positively need in this life. There is a lot we can live without if we exercise self-control.

3. Realize that saving is fun.

Saving money can enable you to accomplish so much more than the fleeting satisfaction of a quick spend.

Our family has personally been saving for a big trip to Costa Rica this summer. We’ve been working really, really hard over the past several years to make this a possibility, and we cannot wait to go!

In the spirit of transparency, I will say that our family is still currently trying to figure out exactly what a decent budget should look like for a family of five. We have more money now, which gives us wiggle room to spend more, but we are still learning how to be the best stewards of our income.

Do you have a spending problem or an income problem? What is your biggest financial challenge?

“SAVE WITH ECCU” $1,000 GIVEAWAY! EXPIRED

I’m SO excited that ECCU–Evangelical Christian Credit Union–is offering Humbled Homemaker readers the opportunities to jumpstart their savings with a $1,000 giveaway!!

For most of its 50-year history, ECCU has been known for offering churches, Christian schools and other Evangelical nonprofits and ministries with specialized financial services. ECCU continues to expand this core commercial customer focus, while rolling out additional personal financial services:

Personal savings account — a basic savings account for an emergency fund or savings for your kids that’s only $25 to open and has a 0.35% APY2 with no minimum balance.

ECCU is largely an online bank. This direct savings account — also called an online savings account — appeals to on-the-go consumers who prefer to be able to manage their lives online.

Simple Math: Your savings + ECCU = More Ministry

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Although this is my first experience with ECCU, my husband and I have used a credit union for our personal banking for the past 7 years, and we feel very secure doing so. The benefits of using a credit union include customer ownership, fewer fees, and higher savings rates. ECCU is a part of a segment of credit unions practicing affinity-based banking — the intersection of faith and financial planning.

Enter below for a chance to win $1,000.Expired

The contest runs from March 5 – April 10, 2015. The qualified winner must open an ECCU Money Market Savings account where the $1,000 will be deposited. Click here for official rules.

Reader Interactions

98 Comments

I love the idea of Saving is Fun. I want to instill that in our children. To hold off, to wait, to dream rather than going for the fastest, easiest, sometime costliest both in literal sense and in intangible things. My hubby had a friend who love big fancy things but he scrimped, saved, and sacrificed to get those and that really impressed upon my husband.

A few months ago, my hubbies car broke down. It went in the shop, and he needed a way to work.. He drove his truck that DOUBLED our gas price each week, but then it broke down also. He drove my van, until it also broke down. We had no savings and had to borrow money to pay it. If it wasn’t possible for us to borrow it, I don’t know where we would be without savings. Can’t stress enough the importance of having something to fall back on

Thank you for this post! I am laying in bed in tears because of the financial problems and challenges we have to overcome. I am a stay at home mom and my husband works hard and provides for us but with student loan debt plus living expenses just the basics it has been up and down challenges. I have been working on ideas and currently working on a project to bring in an income to help pay debt off. We recieve took a huge hit due to student loans and I feel so terrible because my loans are killing us the most. I am just praying that God will help us through and give us strength not only to be faithful and keep trusting Him but to overcome and be in debt again so thank you for the encouragement and hope it is helping see the light Jesus is shining to get us through our darkness.

Hi Jessica! I am so encouraged that you were encouraged and given some hope through this. Keep praying about that project and ask the Lord to lead you! I remember feeling so hopeless and like we were stuck in a tunnel with no light at the end of it! There is hope. Remember that the Lord is your Great Provider as well. I know when we were low income that was one thing that I held onto every day. {hugs}

It’s so important to teach children the importance of saving. I love the idea of making saving fun. I wish I had been taught about savings and the pitfalls of credit card debt when I was young. While I never racked up the amount of debt some people do today, I did live paycheck to paycheck with some credit card debt for many years. When blessed with a new job that allowed me to pay off my debt in 6 months and start saving, I turned around my finances and have never gone back into debt since. I’m so thankful for what I have learned as I am now retired, so my husband and I are learning to live on less.

Erin, thank you for this post. I know that it will be helpful to so many. Even as hard as it was to go through a period of time struggling so much to know where the funds to live would come from, it’s incredible to be able to look back and see how the Lord provided for you AND taught you so much that you are now able to use to help others. I’m thankful for your ministry and how it not only blesses us but can bless your family, too, with more financial stability. 🙂

We did the save/spend/tithe with our kids too. We also encouraged them to be ‘entrepreneurs’. They dug fishing worms to sell, then when they had saved enough, they invested in a beef calf, and the cash kept multiplying each year. They had enough to help pay their first year of college or buy a vehicle to help when they had jobs in town. They still have great money habits to this day!

Having an emergency savings is imperative and I think if our younger teens can start a savings and have a minimum of at least $1000 when they get out on their own it will really set them up for a lifetime of knowing the importance of saving.

I’m wanting to research their personal savings account later. We’ve had unemployment and underemploment until a few months ago and just now are getting back on time with bills and starting to build a savings from scratch and they look like a good place to research! Thanks!

Thanks so much for this great advice, Sheila! And we were incredibly, incredibly blessed by that couple. I didn’t write about this in the post, but the man actually passed away suddenly of a heart attack three weeks after that. He has left an eternal impact on our hearts in so many ways.

We are working on paying down debt and rebuilding our savings after my husband was injured and couldn’t work. We quickly learned just how important having savings is and we are so thankful we had some.

I love that you mention giving when it is very sacrificial. God blesses that so much and it is a joy to see God provide miraculously. He never fails in providing! I agree that it’s so easy to see a want as a need. Those resale shops may have great $4 deals that are hard to pass up, but it adds up fast when in a really tight situation financially. You are such an awesome example, Erin!

It IS such a joy to see God provide miraculously! I never felt more aware of GOD’S provision–and that all things come from HIM–than during those very lean years!! I totally agree about those resale shops! My biggest money-saving tip is: Just don’t go shopping! LOL But I guess it’s easier for me to say b/c I hate shopping anyway! LOL Thanks for commenting, Jill!!

Okay I had to google “Murphy repellant”. Love Dave Ramsey. We used his budgeting before but I canceled the subscription because mainly inconvenience for ME specifically. I saw on his site after googling the phrase “Murphy repellant” the Gazelle Budget is now on a mobile app. Going to re-visit this now because I loved how it worked.

It’s so hard, isn’t it? We are trying to figure out what exactly is a realistic budget for our family right now now that we have more income. We all need grace–no matter the root of our financial struggles!

Thank you so much, Alyssa–it encourages me that others are encouraged! I have so much on my heart that I want and hope to take more time to share. I never want to forget that place. I hope you are infused with hope today!

Thank you for posting this. My husband and I clash on finances the same way you do – I want to save, but he wants to “make memories”. And these “memories” consist of expensive vacations. I like making memories in small ways, but his style is more elaborate and he gets bored with my ideas. I finally recently snagged a freelance writing job that will help us make ends meet. But he’s now started making plans to purchase a boat in our near future. Financial freedom is about meeting each other’s needs while also becoming free from the idea that money provides happiness and freedom. No. GOD does.

Erin, this post really opened my eyes, but also affirmed what I’ve learned. We have both an income and a spending problem. I’ve been unemployed for 15 months and I was the main breadwinner. What DH makes does not even cover the basics. My taking a minimum wage job will help, but won’t keep us up.That doesn’t mean I am above it. We are looking for less expensive housing, we’ve gotten rid of the cable, taken a ‘dumb phone’ plan vs our smart phone plan, and ‘so on. Even before the job loss, we shopped at thrift stores and dollar stores. But we are close to going under. I”m not looking to live the lifestyle we used to have, I’m happy to live more simply. Surprisingly, DH is on board with that! IDK, your post just opened it all up for me and how we really need to make more changes to make this work…but honestly, we could not live on DH’s salary alone…and that’s the scary part…I’ve been unemployed so long, that no one wants to even look at me…Sorry, just venting…

I am so sorry you are going through such a tough time, financially. I remember feeling like I was stuck in a tunnel with no light at the end of it. I hope you will be encouraged and filled with HOPE very soon!

We seem to have a spending problem compounded by an income problem. We are quickly getting it realigned but it’s not an easy task. Once you have over committed yourself to a mortgage then gotten behind its too late. So then you have to cut way back! Thank you for the helpful tips in this post! I am definitely going to implement them to help us turn our attention back to saving instead of spending!!

I love this. We’ve lived in both camps- a spending problem and an income problem. We’re finally working towards nipping the spending problem in the bud, so that we can eventually work in full time ministry. I appreciate your steps and the call for grace.

I relate to this post so much, as you know. I really hope to be able to teach my kids good money habits… and I hope that they’ll make good decisions from the start, and learn to be wise with their spending, even when they’re young adults.

Erin I really appreciate this post! I’m a saver by nature, and am currently in a pretty extreme season of not having the income. However God has been faithful, as we have stepped out in obedience to Him. Saving in the past, and maintaining good credit has helped a lot. I’m continuing to work on increasing our income, but also knowing that God is able no matter what!

We moved from having a spending problem to having an income problem. We are doing all that we can to bring more in. My husband takes side jobs, I substitute teach, clean houses, and write freelance. It’s never much, but it does add up.

You are so right about giving sacrificially! Even though we struggle, we have never gone without anything we have needed. God truly does provide!

I think saving is fun, too. I see it as a challenge to see how much we can do within our limitations. It’s never easy to do without the things we want or think we deserve, but with hard work and dedication, our efforts alway pay off.

Thanks so much for sharing your story with us, Erin. It is so encouraging. Blessings to you and yours.

We just paid off $3700 in medical debt! We have always had medical debt looming over our head from health issues that our two sweet boys faced. Thankfully, God has always been faithful to provide for us. In miraculous ways, He opened up doors for us to buy our first house. We are so excited while remaining committed to giving generously and saving continually. We are putting any and all “extra” money into our savings to pay for closing costs and new (to us) furniture. Thanks for the encouragement. We were once living on so very little and I can still remember those days so vividly. He is our Provider. That is the one thing we learned and have continued to hold onto.

He IS the Great Provider, Jennifer! That is one thing we learned so much, too! Praise the Lord you were able to pay off the debts and buy a house!! Congrats! It sounds like you have been through a lot!

My family is at our lowest point right now financially. It is inspiring to see there are ways for us to build our family up even more. We make it as is, but have a lot of goals to become self sufficient. Can’t wait to see it all through. 🙂

I love this post and am so encouraged by it. My husband and I are focusing on getting out of debt, and it’s been a journey thus far. Saving is so important as life happens and we should be prepared. We were not and always wound up using our credit cards to resolve the problem. If we had been better stewards from the beginning, we would have an emergency fund to fall back on and would be without the debt we have. It pays to save and be wise with what God has blessed and entrusted us with.

Love these ideas. I was blessed with these teaching and training from my parents. I’ve passed that on to my children and am so thankful they have received it well and are living it out. I wasn’t familiar with this company so thanks for sharing.

We are on baby step 2 of FPU. Having even that small savings account of $1000 has saved us many times this winter (and we’ve had to go back to filling that savings account many times). But, it gives me some peace to know that there is some money there “just in case”.

Such practical tips! I’ve really been on both sides of this too. Fortunately, I was already accustomed to frugality when we had to pay some incredibly expensive medical bills. I wasn’t sure where we could possibly cut our budget further to make the payments, but God showed us where we could do it. And then in seasons of affluence, it’s really easy to forget what it was like in the lean years. It’s really all God’s money, so it’s so important that we approach this area with wisdom and stewardship of His resources in mind, but so often we just get lazy. Or maybe I’m just speaking for myself. 🙂

Great article! Yes, I’ve often felt a little jealous of my sister’s low income (but no debt) because it is quite challenging to live in circles of people making a ‘good’ income and to be worried about feeding your children… Although, I grew up poor and life was much better (simpler) than when we did have money!

We started on our own road to financial peace about 18 months ago. Still trucking along with several major setbacks. We have discovered we also have an income issue (or need to move to a cheaper state) in order to see the progress we would like. Hard to do with 4 little ones in tow, but it is possible!

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Grace-Filled,Healthy Homemaking

I’m Erin. Follower of Jesus. Wife to Will. Mommy to a lovely trio of redheaded girls and one sweet baby boy. Professional dreamer. Drinker of chai tea and peppermint mochas. Recovering overwhelmed homemaker. I’m here to encourage, educate, and empower you to live a grace-filled, natural life. Won’t you join me?